Are you running ads on Facebook about your business or your products? I am sure your answer would be yes as this is one of the most efficient platforms for reaching out to your target customers with your brand, business, or product related communication, engage them, and convince them to take desired actions. With a strategically decided budget, awesome ad creatives, and an appropriate target audience it can do wonders in terms of brand awareness, product consideration, sales increment, and more.
But how do you analyze if your ads are performing most efficiently? Could these be better? Are these meeting the desired objectives? These are some primary challenges faced by digital marketers while using Facebook as a platform of marketing.
Here are some KPIs by analyzing which you can optimize your ads for the best possible performance –
- Analyzing Reach: This KPI helps you to analyze if your Facebook ads are able to reach out to the desired number of targeted audiences. You can analyze it with the help of the following three metric – i) Reach ii) Impression iii) Frequency
Reach is the number of people who saw your content and impression is the number of times people saw your content, even if the same person saw the ad multiple times. Frequency, as defined by Facebook, is the average number of times your ad was served to each person.
Evaluating this KPI you can take action on your budget strategy.
- Engagement Analysis: This helps you understand the acceptance of your content amongst your target audience. The metrics that help you analyze this KPI are – likes, shares, comments, link clicks. Evaluating this KPI you can take action on ad creatives and the ad copies of your Facebook ads.
- Analysis of Click-Through Rate: Another KPI that indicates the acceptance of your content amongst your target audience is Click-Through Rate, shortly CTR. Mathematically it is defined as the total number of clicks divided by the total number of impressions. Just like engagement analysis it also can help you in taking take action on ad creatives and the ad copies of your Facebook ads.
- Conversion Rate Analysis: Conversion rate analysis shortly CvR helps you to analyze if your ads are able to influence your target audience to take desired actions. This is very critical to your business. The mathematical expression for CvR is – the total number of conversions and dividing that by the number of total ad clicks or other interactions. This analysis helps you to take action on the objectives that you have chosen for your Facebook ads, discounts, offers, and more.
So these are the basic metric that can help you optimize your Facebook ads. I am sure you are quite excited to put it into action. So go ahead and try it now!